Oregon income tax rates and brackets for 2025 and 2026

Oregon has four rates. Each applies only to the taxable income inside its bracket, and married couples filing jointly, heads of household and surviving spouses use brackets twice as wide as single filers. The two lower bracket edges rise with inflation each year; the $125,000 and $250,000 points where 9.9% begins are fixed in law (ORS 316.037).

The 2026 figures are the ones the Oregon Department of Revenue uses in its 2026 estimated tax guide and withholding formulas. The final 2026 rate charts come with the 2026 Form OR-40 instructions, in January 2027.

An Oregon return starts from federal adjusted gross income, then makes Oregon’s own additions and subtractions. Two subtractions matter for almost everyone: Social Security is not taxed, and you can subtract part of the federal income tax you paid, up to $8,500 for 2025 and $8,750 for 2026 ($4,250 for 2025 if married filing separately). That subtraction steps down above $125,000 of federal AGI ($250,000 on a joint, head of household or surviving spouse return) and is gone at $145,000 ($290,000).

Then comes Oregon’s standard deduction, much smaller than the federal one, or Oregon itemized deductions. After the rates are applied, an exemption credit comes off the tax: $256 per person for 2025, not allowed if federal AGI is over $100,000 single or married filing separately, or $200,000 for other filers.

For example, a single filer with $60,000 of wages for 2025 and about $5,070 of federal income tax has Oregon taxable income of about $52,090 after the federal tax subtraction and the $2,835 standard deduction. The rates give about $4,250 of tax, and the $256 exemption credit brings it to about $3,990, roughly 6.7% of wages.

When personal income tax revenue beats the state’s forecast by more than 2% over a two-year budget period, the Oregon Constitution returns the surplus to taxpayers as a credit called the kicker. It can only be claimed on the return for an odd-numbered year. For the 2023-25 budget period the surplus was about $1.4 billion.

The kicker on 2025 returns, filed in 2026, is 9.863% of your 2024 Oregon tax liability: your 2024 tax before credits, withholding and payments, except the credit for tax paid to another state. To get it you must have filed a 2024 Oregon return with a tax liability and file a 2025 return, even if you would not otherwise have to. The Department of Revenue’s “What’s My Kicker?” calculator gives your amount; you can instead donate all of it to the State School Fund. Oregon does not tax the kicker.

There is no kicker on 2026 returns, because 2026 is an even year. The next possible kicker is on 2027 returns, filed in 2028, and the state’s September 2026 revenue forecast put revenue below the kicker threshold. That can change with later forecasts; it is final after the budget period ends on June 30, 2027.

The July 2025 federal tax law (Public Law 119-21) created deductions for 2025 through 2028 for qualified tips (up to $25,000), overtime pay (up to $12,500, or $25,000 on a joint return), interest on a loan for a new U.S.-assembled car (up to $10,000) and an extra $6,000 for each person 65 or older.

Oregon does not tax any Social Security or Railroad Retirement benefits. Most other retirement income is taxed at the regular rates, including private and state or local government pensions, IRA withdrawals and 401(k) payments.

Credits come off the tax after the exemption credit. Some are refundable, paid to you even if they are more than your tax.

Two local income taxes apply around Portland. They are filed and paid separately to the City of Portland Revenue Division, not on the Oregon return, and employers must withhold them for employees earning more than $200,000 a year. The Revenue Division allows no extension to pay.

Separately, Oregon’s statewide transit tax takes 0.1% of wages of Oregon residents, wherever they work, and of nonresidents for work done in Oregon; employers withhold it. Measure 120, which would have raised it, failed in May 2026. The TriMet and Lane Transit District payroll taxes are paid by employers, not withheld from pay, though self-employed people in those districts may owe the transit self-employment tax.

A full-year resident must file if they must file a federal return, or if gross income is over the Oregon threshold, for 2025: $7,935 single, $15,865 married filing jointly, $9,950 head of household, more if 65 or older or blind. File anyway to get back Oregon withholding, to claim a refundable credit or to get a kicker. Full-year residents file Form OR-40, part-year residents OR-40-P and nonresidents OR-40-N.

2025 returns were due April 15, 2026; Oregon’s due date follows the federal one, so 2026 returns are due April 15, 2027. Oregon accepts a federal extension; without one, you get an Oregon extension by paying under Publication OR-40-EXT by April 15. Either way the extension is to file, not to pay.

Check an Oregon refund with the Department of Revenue’s “Where’s My Refund?” tool. You need your SSN or ITIN, your filing status and the exact refund amount, from line 47 of Form OR-40 (line 72 of OR-40-N, line 71 of OR-40-P). The Department asks you to wait two weeks after filing before checking.

It says 95% of refunds arrive within two weeks, and the 5% reviewed by hand within 20 weeks. Call 503-378-4988 or 800-356-4222 only if your status has not changed in more than 20 weeks.

You are an Oregon resident if Oregon is your domicile, your permanent home that you intend to return to. You can also be taxed as a full-year resident if you keep a permanent home in Oregon and spend more than 200 days here, unless the stay was temporary. Residents are taxed on all income; nonresidents only on Oregon-source income. In the year you move, Form OR-40-P figures the tax as if you were a resident and then charges your Oregon percentage of it.

A Washington resident who works in Oregon pays Oregon tax on pay for work done in Oregon, but not on work done at home in Washington. Washington has no wage income tax to credit against it. Oregon residents who pay income tax to another state on the same income claim a credit on the Oregon return; for Arizona, California, Indiana and Virginia it works the other way, and you claim the credit on that state’s nonresident return.